Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net loss $ (7,121,000) $ (5,325,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 62,000 31,000
Stock-based compensation 900,000 407,000
Stock issuance for services 30,000 208,000
Noncash interest expense 634,000
Noncash lease expense 153,000
Changes in operating assets and liabilities:    
Accounts receivable (824,000) (1,089,000)
Inventories (393,000) (1,336,000)
Other current assets (261,000) 36,000
Accounts payable 1,001,000 687,000
Accrued expenses (47,000) 204,000
Due to Factor 1,655,000
Deferred revenue 26,000 40,000
Accrued interest 890,000
Office lease payable (14,000)
Customer deposits 212,000 (9,000)
Net cash used in operating activities (3,987,000) (5,256,000)
Cash flows from investing activities    
Purchases of equipment (122,000) (101,000)
Net cash used in investing activities (122,000) (101,000)
Cash flows from financing activities:    
Proceeds from the sale of common stock 3,695,000
Repayment of line of credit - related party debt (2,500,000)
Borrowings from short-term loan - related party debt 1,000,000
Borrowings from line of credit - related party debt 3,155,000 2,500,000
Principal payments of financing lease payable (12,000)
Net cash provided by financing activities 4,143,000 3,695,000
Net change in cash 34,000 (1,662,000)
Cash, beginning of period 102,000 2,706,000
Cash, end of period 136,000 1,044,000
Supplemental Disclosures of Non-Cash Investing and Financing Activities:    
Initial recognition of right-of-use asset 2,706,000
Accrued interest converted into principal 1,205,000
Interest paid 92,000
Common stock issued for conversion of related party debt 8,475,000
Common stock issued for conversion of accrued interest 1,610,000
Stock issuance for services $ 30,000 $ 208,000